IVOO: Simple, Easy Way To Access Mid-Caps

seekingalpha05-27

Jonathan KitchenThey aren’t small, and they don’t always behave like small stocks – which is the good news. Mid-caps don’t have the same degree of vulnerability small-cap companies do, and yet you can...

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Mid-caps don’t have the same degree of vulnerability small-cap companies do, and yet you can...</p>\n\n<a href=\"https://seekingalpha.com/article/4695817-ivoo-simple-easy-way-to-access-mid-caps\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>IVOO: Simple, Easy Way To Access Mid-Caps</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIVOO: Simple, Easy Way To Access Mid-Caps\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-27 19:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4695817-ivoo-simple-easy-way-to-access-mid-caps><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Jonathan KitchenThey aren’t small, and they don’t always behave like small stocks – which is the good news. Mid-caps don’t have the same degree of vulnerability small-cap companies do, and yet you can...</p>\n\n<a href=\"https://seekingalpha.com/article/4695817-ivoo-simple-easy-way-to-access-mid-caps\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://seekingalpha.com/article/4695817-ivoo-simple-easy-way-to-access-mid-caps","article_id":"2438863593","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1609437977/image_1609437977.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2438863593","pubTimestamp":1716807674,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Jonathan KitchenThey aren’t small, and they don’t always behave like small stocks – which is the good news. Mid-caps don’t have the same degree of vulnerability small-cap companies do, and yet you can","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","SPMD":"SPDR Portfolio S&P 400 Mid Cap ETF","FDN":"First Trust Dow Jones Internet I","BK4588":"碎股","BK4550":"红杉资本持仓","IVOO":"Vanguard S&P Mid-Cap 400 ETF","BKMC":"BNY Mellon US Mid Cap Core Equity ETF"},"translate_title":"IVOO：访问中型股的简单易行的方法","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BKMC":1,"IVOO":1,"SPMD":1,"FDN":0.62},"content_text":"Jonathan KitchenThey aren’t small, and they don’t always behave like small stocks – which is the good news. Mid-caps don’t have the same degree of vulnerability small-cap companies do, and yet you can get a decent amount of growth potential here. The key driver for these companies is in their relative agility because mid-caps are generally smaller companies that can more quickly adjust to emerging trends than their giant peers. I’m bullish on a rotation out of large into mid and small, and the Vanguard S&P Mid-Cap 400 ETF (NYSEARCA:IVOO) is an easy asset class way to play it. IVOO has been around since September 2010. The fund is passively managed and designed to track the S&P Mid-Cap 400 Index, which is composed of 400 US medium-size companies representing the mid-cap segment of the equity market. The low expense ratio of IVOO, at 0.10 percent, is significantly lower than the expense-ratio average for the mid-cap blend category in which the fund falls. This cost efficiency translates nicely into higher potential returns to investors because a greater proportion of fund assets can be reinvested and compounded over time. A Look At The Holdings This is a very diversified fund. It currently has 401 positions, all of which are under 1% of the portfolio. Nowhere near the idiosyncratic risk you see in large-cap market-cap weighted averages, and that is key. vanguard.comFrom a sector perspective, IVOO is well-balanced and has the most exposure to the Industrials (21.90%), Financials (16.00%), Consumer Discretionary (15.10%). Tech is the 8th largest sector in the fund - clearly making it very different than large-cap averages, where Tech stocks dominate. I like this mix, as it diversifies away from an arguably overheated momentum trade there. I think one can argue that the core sector weights also makes mid-cap funds like this skew more towards the value over growth style of investing. It also makes the fund more domestically sensitive to the US, given the decent sized exposure to Financials and Consumer Discretionary companies. Keep in mind that the Financials exposure here inherently stays away from many of the regional bank stocks that have plagued small-cap indices since March of last year. The Consumer Discretionary stocks here also should be more resilient than what you would see in smaller retailers, as an example, given their size and likely lower overall debt to equity ratios. The point is that this should, from a sector perspective, behave differently (hopefully in a good way) than small and large-cap averages. Peer Comparison: Evaluating Alternative Mid-Cap ETFs Two other funds worth considering are SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) and the BNY Mellon US Mid Cap Core Equity ETF (BKMC). IVOO and SPMD have performed in line with each other, and each has outperformed BKMC over the last two years. Good to see here. stockcharts.comPros and Cons: Weighing the Merits of Mid-Cap Investing On the plus side, over the long-haul mid-cap stocks have actually outperformed not only small-cap stocks, but large-cap stocks on average. Because they are nimbler generally speaking, mid-caps tend to be able to follow the next big wave, but with more stability than smaller firms. For growth investors, these stocks also tend to have better estimated earnings per share growth than small-caps. But investors should be aware of the extra risk implicit in mid-cap investing compared with large-cap investing. While mid-cap companies might be experiencing faster growth, they are typically more volatile and exposed to liquidity risk than larger companies. Their management team might be nimbler but less experienced than those of large corporations. Smaller companies are also more likely to face economic or industry downturns that can impact their share prices. Conclusion? Solid  This is a good fund with a super-low expense ratio, wide diversification, and investors are likely underexposed here given large-cap momentum in recent years. This feels to me like a long-only anti-Technology play, in that it isn’t a driver of momentum relative to the top three sectors. I think this is worth considering and position more into as large-cap momentum, inevitably, fades in the long term.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2438863593"}